UK house prices up as buyers return

British house prices are 5.4 per cent higher than last northern summer as property market activity intensifies, figures show.

Lender Halifax said prices rose 0.4 per cent in August, the seventh consecutive monthly increase, resulting in an average figure of STG170,231 ($A292,568).

Prices in the three months to August were 5.4 per cent higher than in the same three months a year earlier, better than July's 4.6 per cent increase and the highest annual rate since June 2010. The annual rate has picked up from 1.1 per cent in March.

Halifax housing economist Martin Ellis said economic improvement and government schemes have helped boosted demand, although activity is still being held back by the squeeze on household budgets.

"Overall, house prices are expected to rise gradually over the remainder of the year," he said.

Halifax's report follows similar findings from building society Nationwide last week that the housing market revival is gathering pace.

Lenders, surveyors, estate agents and property websites have all been reporting a strong pick-up in activity following the launch of Funding for Lending, which has prompted a big improvement in mortgage availability and rates.